US Methanol Output Boosts Gas Demand
US industry is boosting the demand for methanol for which gas is the feedstock, the Energy Information Administration (EIA) said January 24. Fertilisers are another major source of demand as manufacturers seize on cheap gas, which is a major portion of their operating expenses. Gas purchasing can account for a quarter of the input cost of producing fertiliser.
In the Short-Term Energy Outlook released on January 15, EIA forecasts that these new projects will help drive growth in industrial natural gas demand through the forecast period, which runs through the end of 2020. EIA forecasts industrial demand this year will average 23.2bn ft3/day, 2% higher than 2018 levels; and 23.4bn ft3/d in 2020.
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In 2018, one new methanol plant entered service, producing 5,000 metric tons/day (1.8mn mt/yr) in Beaumont, Texas. This has required some 0.16bn ft3/d of natural gas. Three more are planned to come into service this year and next, in the Gulf Coast and elsewhere. One is even being relocated from Brazil to the Appalachia Basin, in pursuit of cheap gas.